POLICE in Australia were last night checking reports of human remains found in a dam, amid speculation they may belong to missing British backpacker Peter Falconio.

The lower part of a male torso was found at a dam near the town of Marla, South Australia. It was discovered 750 miles from where Mr Falconio is believed to have been killed as he drove along the Stuart Highway with his girlfriend Joanne Lees on July 14, 2001.

Miss Lees escaped and Bradley John Murdoch, 44, has been charged with murdering Mr Falconio.

A Foreign Office spokeswoman in London said British consular staff were looking into the report.

Police said the remains would be taken to Adelaide for DNA tests in coming days.

They were keeping an "open mind" on whether the remains could belong to Mr Falconio, but were also checking all other missing person reports.

A spokesman for South Australia Police said, "We don't know who it is and at this time we're not speculating. The remains are in a decomposed state so it's difficult to tell how long they have been there or how old the person was."

He said the dam was in a remote spot about 20 miles south of the nearest town Marla and 750 miles north of the state capital Adelaide.

There was a cattle station nearby and the remains were found by an employee of the farm, he said.

The dam was off the Oodnadatta Track in the far north of South Australia state. It was about 30 metres wide and four metres deep and is used to store water for livestock.

Police and local people were searching the land area around the dam aided by police helicopters.

Inspector Peter Batley said, "We are treating this incident with an open mind at this point and are liaising with other police forces throughout Australia."